BlackBerry's problems affect Taiwan manufacturers

After announcing on Friday that it would write off nearly $1 billion worth of BlackBerry Z10 models, some Taiwan handset manufacturers are affected by the Canadian manufacturer's decision to leave the consumer market. For example, ODM/OEM Wistron is expected to have its orders from BlackBerry reduced by half as BlackBerry cuts its line up from 6 models to 4. That will consist of 2 high-end and 2 entry-level phones.

Other suppliers such as keypad producers Silitech and Ichia will both be less affected by BlackBerry's plans since they have already started cutting back on their reliance to orders from the Waterloo based firm. Sales to BlackBerry represent only 10% of each company's revenues.

Sources close to the situation say that BlackBerry has started taking deliveries of its first 5 inch model, the BlackBerry Z30. But initial orders for the most powerful Berry ever from the Canadian handset provider are lower than the initial orders placed by BlackBerry for the BlackBerry Z10 back in Q1. But back then, the BlackBerry 10 platform was untested and there was real hope that BlackBerry had come up with a winning OS. But after announcing its intention to do the write off, it certainly looks like the whole BlackBerry 10 platform has not been the success that was hoped for.

source: DigiTimes